Hm Treasury
Detail of outcome
The Call for Evidence on aligning the ring-fencing and resolution regimes sought views on the ongoing financial stability benefits of the ring-fencing regime and on the steps that could be taken to better align the ring-fencing regime and resolution regimes. It also invited respondents to consider a wider range of options for the longer-term future of ring-fencing.
The Call for Evidence received 14 responses providing a broad range of views which are summarised in the Response document. The government will set out publicly its policy response to the Call for Evidence and any proposals for further reform regarding the longer-term future of ring-fencing in the first half of 2024. Any proposals for reforms will be subject to consultation in the normal way.
Separately, the government has published a consultation on draft secondary legislation to implement the proposed near-term reforms to the ring-fencing regime.
Original call for evidence
Call for evidence description
The independent review on ring-fencing, chaired by Sir Keith Skeoch, found that the benefits of the ring-fencing regime would likely reduce over time as the resolution regime for banks is embedded. The review concluded that the resolution regime offers a more comprehensive solution to addressing the problems of too big to fail and recommended that the government consider the practicalities of aligning the ring-fencing and banking resolution regimes, while maintaining the UKs financial stability.
This Call for Evidence is the first stage in the governments response to this recommendation. It seeks views on the ongoing benefits that ring-fencing provides to financial stability not found elsewhere in the regulatory framework and on the steps that could be taken to better align the ring-fencing and resolution regimes without losing financial stability benefits. The Call for Evidence invites respondents to consider a wide range of options for the longer-term future of ring-fencing.
